Limited Liability Company (LLC) is one of the business structures that entrepreneurs prefer, especially if you’re a startup. One top advantage of this structure is the separation of personal assets to your business in terms of debt, bankruptcy, or lawsuits in the future. It also has a flexible system like that of a corporation but isn’t too formal. LLC is also a way to legalize your business in your state.
If you plan to form an LLC for your business, you might be a bit lost on where and how to start. In this case, keep reading this guide regarding LLC formation.
Before you can operate, you need to choose a business name for your LLC. Make sure that it is unique among the businesses filed in the Wisconsin Department of Financial Institutions. The good thing is you can reserve your LLC name for 120 days. You can do it by filing Form 1 of the Name Reservation Application in the Wisconsin Department of Financial Institutions. Likewise, you should be aware that under Wisconsin law, your name should have the words “Limited Liability Company” or “LLC” at the end.
You need to have a registered agent to help you in the process when operating a business in Wisconsin. In fact, it is required on any Foreign LLC and Wisconsin LLC. This agent is responsible for accepting legal documents on your LLC’s behalf when sued. Your registered agent also needs to have a Wisconsin physical address.
Filing Articles of Organization is another step to form your Wisconsin LLC. You may file it on your state’s Department of Financial Institutions. The Wisconsin LLC cost is $170 when filed by mail and $130 when filed online. The article must include the following:
- LLC name, email address, and business phone number
- Name and address of your registered agent
- Type of management
- Name and address of every organizer
- LLC’s organizer signature
- The name of who draft the document
An operating agreement is not totally mandatory in Wisconsin. However, it is still advisable to have an organized business system. This agreement declares the duties, responsibilities, obligations, powers, and liabilities of every member of the LLC. Moreover, it is not a document presented to your state’s secretary. Instead, it is an internal agreement among the LLC members.
Forming an LLC requires you to comply with tax and additional regulatory requirements such as:
- Business Permits and Licences. Obtaining permits and licenses depending on where your LLC is located. You might need to get a local permit, which you can check with your city’s clerk. Meanwhile, for state licenses, you may consult the Wisconsin Department of Safety and Professional Services site.
- EIN. An LLC with members is required to obtain your own IRS Employer Identification Number, even if you don’t have employees. You can apply for EIN online through the IRS website.
Don’t forget that forming an LLC also requires you to file an annual report. You can file it on Wisconsin’s Department of Financial Institution’s website. Your annual report’s due is based on the calendar quarter anniversary month of the formation of your LLC.
Now that you have the rundown of the things you need in forming an LLC, you can set everything right and organized. Although it takes a couple of processes, rest assured that your business will be legalized according to your state’s policies.